Jakarta: The recently appointed State-Owned Companies (SOEs) Minister, Erick Thohir, has said that the increasing amount of debt beared by SOEs is still manageable.
He said that as long as the debt borrowed by the SOEs is used to fund public projects for public welfare and also for productive activities, then there will not be a problem.
“I think we should not regard debt as something negative,” Erick said here on Wednesday, October 23, 2019.
He said that debt can produce income if it is used for productive activities.
“Then the income obtained can be used to pay off the debt but gradually," said Erick.
Otherwise, he said that debt can be dangerous if it is embezzled for personal interest and other criminal purposes.
Previously, The Central Bank of Indonesia (BI) has released the official external debt position of Indonesia, where the debt obtained by Indonesia currently totals to $393.5 billion, which equals to 5,902 trillion rupiah.
Out of that number, $51.06 billion, which equals to 765 trillion rupiah, is the debt beared by the SOEs.
The SOEs debt is comprised of banking debt, which totals to $7.58 billion dollar; non- banking financial institution (LKBB) debt, which totals to $3.77 billion; and non-financial institution debt, which totals to $39.51 billion. (Translator: Muhammad Gestinev)